Cash payments above rs 20,000

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CA Sheela Sreeram (Querist)
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29 November 2014 Dear Sir/Madam

What about Cash payments to Indian Railways above Rs 20,000 towards Wagon charges and demmurrage & wharfarecharges, do they attract sec.40A(3)or exempted under Rule.6DD?

Thanks

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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29 November 2014 Yes it is covered it covered under section 40A(3) read with rule 6DD, as cash payment exceeds Rs. 20,000/- therefore it is not allowed as deduction under income Tax Act.

Since No specific exemption provided for the same

CA Sheela Sreeram

CA Sheela Sreeram (Querist)
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29 November 2014 Sir,

Thanks for your reply. Though there is no specific exemption, will Rule 6DD(b) can be applied to it as Indian Railways is an Government authority.